Report

Understanding the Direct Power Purchase Agreement (DPPA) mechanism

• To serve the goal of renewable energy development, the Ministry of Industry and Trade (MoIT) has issued a guiding document on the direct power purchase and sale mechanism (DPPA) between high-volume consumers and renewable energy plants, bypassing the Vietnam Electricity Corporation (EVN).
• The MoIT proposes 2 methods to implement the DPPA, including: direct connection and virtual connection through the national power system.
• The DPPA mechanism is expected to allow industrial customers to directly access low-cost renewable energy sources and ensure a stable demand for generators.
• Several issues with operating costs, clearing and selling prices are currently hindering the large-scale application of the DPPA mechanism.
Provider
Viet Dragon Securities
Viet Dragon Securities

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Analysts
Chinh Nguyen

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